Good news during industry changes
It’s no secret that the retail industry is facing challenges amid the COVID-19 global pandemic. Albuquerque’s retail market has begun to see the impact of extended retail closures over the course of the second quarter. Amidst announcements of both national and local closures, some retailers are finding success, particularly with grocery and takeout concepts.
National chain and local restaurants are feeling the pressure to adapt their model, as they have been restricted from offering dine-in services by the Governor’s public health orders. According to the New Mexico Restaurant Association, at least 200 restaurants have already shuttered their doors for good. Most of the closures were local family-owned or small businesses.
Major retailers including Macy’s, The Children’s Place, Victoria Secret, Bath & Body Works, Sweet Tomatoes and others are announcing major store closures, and stores like JC Penney, Pier 1 Imports, Tuesday Morning and GNC are filing for bankruptcy protection and restructuring. These national closures will impact Albuquerque, which has two Pier 1 Imports and two Sweet Tomatoes location that will close.
Key factors this quarter
National and local retailer closures are beginning to impact Albuquerque’s vacancy rate. The second quarter ended with a negative absorption of 46,100 square feet.
Despite COVID-19 restrictions on retailer operations, some retailers are experiencing increased year-over-year sales, specifically grocery and takeout concepts.
The largest positive absorption of the year was just over 30,000 square feet, which was occupied by New Beginnings Church at Fiesta Crossing shopping center located at 4770 Montgomery Blvd. NE.